Service tax liability adjustment
This query is : Resolved
08 April 2016
Dear Sir,
One of my client has calculated wrong Service Tax for F.Y. 2014-15 resulting into a liability of Rs. 50,000.
Now, in F.Y. 2015-16 the client has paid excess Service Tax resulting into a Refund of Rs. 40,000.
Can he adjust this refund against previous Outstanding demand. If not, how will he able to pay that liability
Service Tax Returns of F.Y. 2014-15 are already filed.
One of my client has calculated wrong Service Tax for F.Y. 2014-15 resulting into a liability of Rs. 50,000.
Now, in F.Y. 2015-16 the client has paid excess Service Tax resulting into a Refund of Rs. 40,000.
Can he adjust this refund against previous Outstanding demand. If not, how will he able to pay that liability
Service Tax Returns of F.Y. 2014-15 are already filed.
08 April 2016
You can inform the Range Superintendent about the payment being made by the challan for F.Y.2015-16. The Service Tax Challan has no period mentioned, so it can be used for any payment and adjusted against the same. However, the interest for late payment too has to be made, if necessary by a separate challan and the same too should be intimated to the Range superintendent.
Claiming refund after paying the outstanding dues is also an option - but the application for refund should be made within one year of the payment and it is very, very difficult / almost impossible to get a refund from the Central Excise / Service Tax Department.
Claiming refund after paying the outstanding dues is also an option - but the application for refund should be made within one year of the payment and it is very, very difficult / almost impossible to get a refund from the Central Excise / Service Tax Department.
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08 April 2016
But how will I revise the Service tax return for F.Y. 2014-15 for which now the client has realised he has made short payment
08 April 2016
There is no way it can be revised. Has your client shown a lower Turnover than in the accounts or was the correct turnover shown and a mistake in tax calculation.
08 April 2016
Turnover is shown less in the service tax return in F.Y. 2014-15, as we cannot revise the return now, what is the remedy
14 April 2016
The tax on the short reported Turnover be adjusted from payment of FY 2015-16. Pay the interest for the delayed period and intimate the Range Superintendent of the mistake and rectification by a duly recipted letter.
14 April 2016
Thanks a lot Sir. One more thing I wanted to know i.e. for late filing of Service Tax Return in the Form ST-3 what period I must select to pay Late fee. eg: Apr-Jun or Jul-Sep
15 April 2016
The latest quarter or month i.e September for the return due on October 25th and March for return due on April 25th.
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